Securing payments for subcontractors

Following the ABCC’s increased scrutiny on the rights of subcontractors to be paid on time the ABCC has established a dedicated security of payments team. The team assesses reports of disputed or delayed progress payments and investigates cases where breaches of the Building Code may have occurred.

Off the back of last year’s nation-wide security of payment awareness campaign and together with mandatory reporting of disputed or delayed progress payments, reports to the ABCC have increased significantly, as has the recovery of money for business owners.

In the 2018-19 financial year the ABCC received:

236 security of payment enquiries;

30 security of payment complaints; and

1,099 reports of disputed or delayed progress payments.

In the third quarter of this financial year alone, $3.8 million was back-paid as a result of self-rectification and ABCC intervention. These figures are expected to increase with the ABCC currently undertaking 64 Building Code security of payment audits. Earlier this year ABCC Commissioner Stephen McBurney referred APM Group Pty Ltd to the then Minister for Jobs and Industrial Relations, Kelly O’Dwyer for failure to comply with security of payment laws. In April 2019 the Minister imposed a month-long exclusion sanction on the company and its related entity APM Holdings Pty Ltd.The sanction left the company unable to tender for, or be awarded, Commonwealth government-funded building work for the exclusion period and sent a strong message to the sector.